Rates Down Despite Inflation Indications

Bonds were up today despite stronger than expected inflation indicators. Rates will be down by .25 to the points today. The April Producer Price Index showed a core reading .4% increase, exceeding the .2% level expected. This is bad news for mortgage rates as it shows prices at the level of the producer rose at a greater pace than previously thought. Rates have continued to drop today due to weakness in stocks and related concerns about high energy prices. This, on its own if it continues, likely could bring more money into bonds and as a result keep rates falling.

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National Rates

Loan Type Today
30 Year Fixed   6.05
15 Year Fixed   5.73
5/1 Adjustable   5.78

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